What is the impact of financial inclusion on poverty reduction?

Financial inclusion can have a positive impact on poverty reduction. When individuals and households have access to formal financial services, such as savings accounts, credit, insurance, and payment systems, they are more likely to be able to manage their finances, build assets, and invest in education and health. These, in turn, can help lift people out of poverty and improve their living standards.

Studies have shown that financial inclusion can help to increase income and employment opportunities, reduce vulnerability to economic shocks, and improve access to basic services such as healthcare and education. By providing access to financial services, financial inclusion can also help to promote financial literacy and awareness, which can empower individuals to make informed financial decisions and improve their financial wellbeing over the long term. Overall, financial inclusion can play an important role in supporting sustainable and inclusive economic growth, while reducing poverty and inequality.